Brooklyn Boro

BP Adams announces challenge to tackle Brooklyn’s consumer debt crisis

March 20, 2015 From BP Adams' office
Brooklyn Borough President Eric L. Adams announces a borough-wide challenge to tackle the borough’s consumer debt crisis at the launch of his second annual Brooklyn Financial Education Empowerment Month, which he officially proclaimed for the month of April. Photo Credit: Kathryn Kirk/Brooklyn BP’s Office
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Thursday, Brooklyn Borough President Eric Adams announced a borough-wide challenge to tackle the borough’s consumer debt crisis at the launch of his second annual Brooklyn Financial Education Empowerment Month, which he officially proclaimed for the month of April; next month is nationally recognized as National Financial Literacy Month. Joined by partner organizations from the financial, grassroots and small business communities, he showed data from the Federal Reserve Bank of New York that shows the severity of the problem in Brooklyn, comparatively to the rest of the city, state, and nation; for example, the amount of debt overall that Brooklyn is carrying past due 90 days or more is more than twice that of the entire nation. Based on those statistics, he unveiled his aggressive goal for reducing Brooklyn’s credit card delinquency by four percent in four years, which would bring that metric just below the national average. 

“Consumer debt is an anchor hanging around the neck of our borough, weighing down Brooklynites and sinking their chances at a prosperous future,” said Borough President Adams. “Our consumer debt crisis is deepened particularly by our severe delinquency, which is at a magnitude that leads to problems like collection agencies, lower credit scores and a reduced ability to do things like get a job or buy a home. That is why I’m issuing a mission to reduce our credit card delinquency rate by four percent in four years; it is the most common debt for all Brooklynites, and tackling this measure will strengthen and empower residents in all aspects of their financial futures.”

Borough President Adams also discussed initial steps on how the borough can achieve his call to action, including an education campaign next month targeting at-risk groups, such as small businesses, youth, and seniors; he emphasized a 2013 report from the Consumer Financial Protection Bureau showing that only one dollar is spent on financial education for every twenty-seven dollars that are spent on consumer marketing. Currently scheduled events include Survive to Thrive, a series of financial education workshops taking place on Wednesdays from 6:00 PM until 8:00 PM at Brooklyn Borough Hall; the Financially Savvy Youth Expo, taking place on Wednesday, April 8th from 1:00 PM until 5:00 PM at Brooklyn Borough Hall; A Small Business Grows in Brooklyn, taking place on Thursday, April 16th from 6:00 PM until 8:30 PM at Brooklyn Borough Hall; Women & Wealth, taking place on Thursday, April 23rd from 6:30 PM until 8:30 PM at Brooklyn Borough Hall; Brooklyn’s Financial Empowerment Day, taking place on  Wednesday, April 29th from 8:00 AM until 11:00 AM and from 6:00 PM until 9:00 PM at Brooklyn Borough Hall; and Securing Brooklyn’s Seniors, with sessions taking place on Thursday, May 14th from 6:00 PM until 8:00 PM at the YWCA Brooklyn located at 30 3rd Avenue and on Friday, May 15thfrom 9:00 AM until 1:00 PM at Brooklyn Borough Hall. Additionally, the Office of the State Comptroller will attend most of these seminars to help Brooklynites search for unclaimed funds.

 “One of the biggest issues I hear when it comes to consumer debt, particularly credit cards, is Brooklynites saying they simply don’t know the facts,” said Borough President Adams. “My goal is to help Brooklynites achieve financial security through education, outreach, and support. Leading causes of consumer debt include factors as controllable as financial illiteracy, insufficient savings strategies, and poor money management. By connecting residents to free education opportunities with experts, we can employ the tried and true ‘each one, teach one’ model to put Brooklyn back in control of its financial destiny. I urge all Brooklynites, regardless of their current financial situation, to come out and acquire this information.” 

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“My office oversees 968,130 unclaimed funds accounts valued at more than $553 million owed to Brooklyn residents,” said New York State Comptroller Thomas P. DiNapoli. “On average, we return more than a million dollars a day to New Yorkers across the state. We are pleased to partner with Borough President Eric Adams to help reconnect Brooklyn residents with their lost and forgotten money.”

Going forward, Borough President Adams said he would work with banks and other key stakeholders to identify tangible recommendations, including addressing the behavior of credit card companies that may be predatory in nature. He announced that his office plans to hold a hearing on the subject of consumer debt in the coming months to further explore the hyperlocal causes and solutions to this crisis, and that it would produce a report on their findings.

“Too many New Yorkers struggle to make ends meet, and our Office of Financial Empowerment is dedicated to providing free financial counseling and tax preparation and developing safe and affordable banking products so they can improve their financial stability,” said New York City Department of Consumer Affairs Commissioner Julie Menin. “The City’s Financial Empowerment Centers have served more than 35,000 New Yorkers and helped them reduce their debt by more than $26 million but we are now looking to bring our services to even more people. We are proud to partner with Borough President Adams to help offer more financial empowerment opportunities to Brooklynites as part of National Financial Empowerment Month.” 

                                                                                                                           


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